LTC Newsletter – September 2023
“I Can’t Hear You”…Real Pay Transparency in a Distrustful World
By Terry Lauter Comp
With trust in institutions today continuing to erode, employers enter the “Pay Transparency” movement at a distinct disadvantage. While there may be overall trust in an organization’s leadership, many employees remain skeptical about the “corporate spin” they believe they are hearing about their own compensation.
For instance, we often see an HR team speak about their “market competitive pay at the X percentile,” and the “generous incentives” that the organization offers. From our experience, this type of language tends to elicit a cool reaction at best. Recently, observing one such well-intended presentation we sensed that many employees metaphorically had “their fingers in their ears.” In other words, no one is listening to the competitive pay speech, even though the pay may be competitive and the company may indeed be generous.
What do employees want to hear about their pay? Long before “pay transparency” was a thing, we discovered that often associates want to know:
- Why am I paid what I’m paid?
- How was the “market competitive” pay level determined?
- What opportunities do I have to increase my pay, now and in the future?
- What does my company do to ensure that pay decisions are fair, and not a result of whether my supervisor likes me?
Much of this same information seems to resonate with employees now. Providing the answers to these simple questions often seems to come across as: Honest. Straightforward. Clear.
Our team at LTC works with Total Rewards professionals regularly to not only develop pay programs but create clear and honest ways to communicate them effectively. If you need assistance with design or communication, click here to connect with an LTC Consultant now.
Terry Lauter Comp is a founding principal at LTC, with experience as a Corporate HR Vice President, national/international consultant, graduate/undergraduate business instructor, author, and community leader. She serves as Practice Leader for Performance and Organizational Development. Terry received her MA degree in Educational Psychology from UCLA and has been accredited as a Sr. Professional in Human Resources (SPHR). She is the co-author of the book, “Think Inside the Box: The Secret to Partnering with Your Employees to Drive Growth and Profit.”
The following article by author Ann Bares reveals other insights about employee distrust in traditional compensation communication:
Compensation Cafe: Cafe Classic: Faith, Trust, and Your Pay Program